Seanad debates

Thursday, 28 October 2010

4:00 pm

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)

Ba mhaith liom mo bhuíochas a ghabháil as ucht an deis a bheith agam chun freagra chuimsitheach a thabhairt don Seanadóir. On 22 September 2010 the European Commission announced its approval of an application from Ireland for European Globalisation Adjustment Fund co-financing assistance in support of redundant workers formerly employed at the SR Technics aircraft maintenance facility at Dublin Airport. The Council of Ministers subsequently approved the Irish application on 26 October and it is understood the European Parliament will make its decision on the application known in plenary session towards the end of November.

The EGF application is for a total of €11.46 million of which the EU contribution sought is €7.45 million. The remaining 35% of total costs will be met by the Government from Exchequer and national training fund sources. The Government has not been waiting around in the interim until all component parts of the tripartite EU approval mechanism are in place. As soon as it was clear that major redundancies were to occur at SR Technics, the national training authority, FÁS, went to the facility to provide guidance and advice to all workers who wished to avail of it. To date, FÁS estimates that 850 former SR Technics workers have availed of its guidance services and 800 training course places have been provided. In addition, approximately 100 workers have availed of vocational education committee and third level educational supports.

A range of enterprise supports is available through Enterprise Ireland and the city and county enterprise boards. Former SR Technics workers may avail of a wide range of supports for which EGF co-financing assistance has been sought, including occupational guidance, training, educational opportunities and enterprise supports.

In terms of complementary programmes, the Government last month completed a process whereby all SR Technics apprentices were offered the opportunity to complete phases 5 and 7 of their apprenticeship with the Air Corps. This is an innovative approach not undertaken before in the State and a number of apprentices commenced their on-the-job placements in Baldonnel Aerodrome in the last week of September.

An information meeting was held at the ALSAA complex in Dublin Airport on 20 October 2010 for redundant SR Technics workers to inform them of the supports being provided with anticipated EGF support. A large range of service providers were present and it is estimated that several hundred redundant workers attended the event.

The Department is seeking to complete a public procurement process to establish a national co-ordinator for EGF implementation commencing with the SR Technics co-ordination. In the interim and until this process is completed, all State agencies and relevant educational bodies involved in service provision for redundant SR Technics workers are co-operating to ensure appropriate supports continue to be provided.

Any delay in this application being approved to date was outside the control of the Irish authorities and there was no lack of urgency on Ireland's part. A comprehensive application was made last October and it was not until January 2010 that the European Commission sought additional information centring on the potential relocation of some SR Technics facilities elsewhere in the EU, namely, Malta. The Irish authorities subsequently made every effort to reassure the Commission that there was no direct relocation of Irish jobs elsewhere in the EU, which such intra-EU transfer runs contrary to eligibility under the EGF. This was done in the context of the commercial company in question having relocated outside Ireland. Discussions continued with Commission officials culminating in a meeting in Dublin in late March. In early April the Irish authorities formally responded to the Commission's further information request in a manner which subsequently saw the Commission approving the application last month. The EGF approval process has, from experience, taken considerable time - between six and eight months - to be finalised, but in the interim, measures of the type I have outlined continued to be provided to SR Technics workers. I was Minister for Enterprise, Trade and Employment at the time and the Minister of State, Deputy Calleary, on my behalf, met the Commissioner to expedite the application.

With regard to the question of the time period of EGF assistance, the EU regulation governing the fund stipulates this to be 24 months from the date of submission of the application. I agree with the Senator that this mechanism presents difficulties for member states in that there is an emphasis on them to front-load funding without guarantee of reimbursement to specified limits from the fund. This is particularly so in the current adverse economic and financial climate. A number of member states, including Ireland, have made their difficulties with the current mechanism known to the European Commission. While the Commission is reviewing the EGF regulation next year, it is not anticipated that amendments will be made quickly, if at all, in this context to the benefit of the redundant workers from SR Technics.

I will pursue the matter with the Commissioner and with a number of our MEPs with a view to providing a fairer opportunity for people in the continuation of further education and I will evaluate the matter with my colleague, the Minister of State, Deputy Haughey. While I appreciate there is angst, fortunately some of the former SR Technics workers have been re-employed in Dublin Aerospace and in other new opportunities, and the Air Corps has taken the apprentices. I appreciate the Senator's views on long-term programmes of third level education over three or four years and I will keep a close eye on the matter for him.

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